XM Satellite Radio will release their 4th quarter and full year 2007 financial results in just over two weeks: on Thursday, February 28th (two days after Sirius does the same).
XM has scheduled their conference call for that Thursday at 10am ET to announce and discuss the results.
As always, the call will be streamed online, or if you're not in front of a computer you can listen via telephone: just dial 877-265-5808 (toll-free) or 706-679-7931 (local number). The conference ID number is 35479749.
Having the call at 10 am after market open--yet another strange twist to the saga. I can't remember either company doing an earnings call after open and before close.
Having the call at 10 am after market open--yet another strange twist to the saga. I can't remember either company doing an earnings call after open and before close.
Has either company ever reported earnings AFTER market open?
Are they going to hold trading for this? WTF? This sounds to me like it's a formality post-merger... this is too bizarre to take on its face.
XM has been holding its quarterly calls on weekdays at 10 am ET for at least four years.
Have they? Are u sure. If so, my mistake
>>>Have they? Are u sure. If so, my mistake
msandman -- yes, XM has always held their calls at 10AM -- actually going back to as far back as 2002, when I first started listening in. That time of day has always been a pain for me to listen in live.
Sirius used to hold their call at 10AM too, but when Karmazin started there -- the call was moved to pre-market... which is a pain for my friends that live on the West Coast.
Cash burn will be a major point to watch. If my guess and calculations are correct, XM will have somewhere between $145M and $160M on hand. They are burning through cash at an incredible rate.
Major cuts in payroll and other expenses are needed to stop the massive loss of cash reserves at XM. I expect that XM will be announcing some senior management resignations in March.
Let's see how right/wrong I am on 2/28.
>>> They are burning through cash at an incredible rate.
XM's operating cash burn for the 3 quarters ended 9/30/07 was about $95M, or just over 30M/q. Given their total liquidity (cash plus available lines of credit), they can burn cash at this rate for 20 quarters without running out. At the rate their cash burn has been improving, they should have no problem getting there with the available money.
SIRI's problem is far more critical, with only a few quarters' of cash and lines of credit available. Of course, they are also facing hundreds of millions in satellite capex over the next couple of years, too -- so their problems are much bigger all the way around. They are going to have to come up with cash for financing operations as well as cash for capex. They'll be 2 billion in debt before they start breaking even.
Had XM not entered into this insane merger agreement, they would have been operating cash flow positive for the full year, I believe. So, their cash burn for the year is essentially comprised of merger-related costs.
Anonymous Coward said:
>>>"Cash burn will be a major point to watch. If my guess and calculations are correct, XM will have somewhere between $145M and $160M on hand. They are burning through cash at an incredible rate."
XM has had positive operating cash flow in each of the two previous Q4's -- and would have had positive FCF in those quarters too, however there were large amounts of satellite replacement CAPEX spent in those two Q4's.
In Q4 2007, XM had little to zero in satellite CAPEX and increased cash flow going in to the quarter, by comparison to previous years. IMHO, not only did XM have positive operating cash flow in the quarter -- I firmly believe that they has positive FCF too.
At the end of Q3 last year, XM had $231 million in cash -- plus another $400 million on their equity line(s), giving them $631 million in liquidity. Since I believe that XM had positive FCF in the quarter, I obviously see their cash balance increasing from the previous quarter.
You see between "$145-160 million"... I see between $240-265 million" cash on hand.
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